04 Jan So what is this NRAS thing anyway?
If you’ve been toying with the idea of purchasing an investment property or adding to your portfolio as part of your New Year wish-list, the National Rental Affordability Scheme (NRAS) is well worth considering. This fantastic initiative is designed to increase the supply of affordable rental housing and cut costs for low to mid income earners by slashing standard rental rates by 20 per cent.
But don’t worry – investors won’t be left out of pocket. In return, the Federal and SA Governments will give you more than $9000 tax free each year for up to a decade. You can also claim negative gearing and depreciation as tax deductions.
More than 400 properties have been earmarked for construction in South Australia in the latest round of the scheme, so you will need to act quickly if you want to be part of something that sounds too good to be true…but isn’t!
Lifestyle Money Management will help you to get the process underway by undertaking a personal assessment which will determine how much you can afford, along with your tax deduction entitlements. We can also help you find the right loan and take care of the conveyancing, insurance, and future financial planning.
The NRAS dwellings will range from studio apartments to large family homes which incorporate sustainable building design in order to maximise energy efficiency and comfort with reduced running and infrastructure costs. They will be located in areas of high rental demand which offer strong employment opportunities, schools, transport and other services.
They will be professionally managed and tenants will need to meet minimum income criteria – There is a income criteria in place from when they first move in, and the tenant is allowed to earn pay increases while there, and will not be ineligible until a year after he has had that ineligible income for a year. This isn’t social housing; rather, it will be geared towards tenants from the service industry such as nurses, fire fighters and police.
If it all sounds a little ‘new’ don’t despair – one of the best things about the NRAS Scheme is that you’re not locked in to any deal, and can sell the property at any time. Alternatively, sit tight and watch your investment grow.
Rental Assistance Scheme is about to kick off in South Australia.
Under this scheme, you can buy NRAS approved properties with Government assistance … here’s how it works:
- You reduce standard rent by 20% and for that the Federal and State Governments will give you $9,542 tax free each year (CPI indexed), 75% from the Federal Gov’t with tax return, 25% from State, processed in September, paid directly into bank account late Sep or October.
- The property is NRAS guaranteed for up to 10 years but you have the ability to opt out or sell the property at any time
- Properties are professionally managed with tenants having to meet minimum income criteria
- Depending on purchase price it is possible to buy a NRAS property and receive tax deductions – all with NO out of pocket expenses
- Statistics show property doubles in Australia every 7 – 10 years* – so with our help and the right property you can cash in and reap the benefits
* Source – ABS
So there you have it – the secret’s out, but be quick – there are limited properties available. Call Lifestyle Money Management today to discuss the NRAS scheme and how you can make the most of this amazing opportunity.